Biomethane in the EU

Because biomethane can be produced at a steady pace and can be stored as well, it is seen as a pillar in Denmark’s future integrated energy system. Yet, concerns over subsidy costs remain high. [Nature Energy]

Biomethane production remains tiny at the moment in Europe but the industry has big plans for the future, provided costs can be lowered and environmental issues addressed. In this special report, EURACTIV looks into the challenges and opportunities facing the sector.

The prospects for biogas in Europe look bright, with conservative estimates pointing to a tenfold increase in production by 2030. However, the industry will need to stay rooted in the local economy and come clean on environmental credentials if it wants to avoid a green backlash, analysts say.

The price of CO2 credits on Europe’s emissions trading scheme needs to rise to around €50 per tonne in order to drive the long-term development of Europe’s biomethane industry, says Marc-Antoine Eyl-Mazzega, a French researcher.

Biomethane production costs are expected to fall in the coming decade as more biogas plants come on stream. But analysts warn that massive cost reductions like in the solar and wind power sector are unlikely and policy measures will be needed to prop up this fledgeling renewable energy industry.

The market for Guarantees of Origin (GOs) linked to renewable gas is currently in its infancy. But with demand building up, industry figures – and environmentalists – are now calling for existing certification schemes to be harmonised and made mandatory across the European Union.

In the search for alternatives to fossil fuels, gas as an energy vector has the capacity to play a decisive role. To do this, it is absolutely necessary to green our gas as much as possible, writes Jean-François Carenco.

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